Welcome back everyone to this week’s edition of my Bitcoin - Forex Combo Strategy! During my last update “Bitcoin - Forex Combo Strategy: The Busan Regulation-Free Zone”, I discussed a positive fundamental trend across the cryptocurrency sector. With Bitcoin pushing higher since the start of 2020, many call for new all-time highs, as the third having event will take place on May 20th 2020. The previous two have led to a strong rally, but I think that this year will the opposite effect.
Bullish momentum is strong and we may push into the 10K level, which acts as a major psychological resistance level. The majority of analysts, hobby or professional, are quick to point out the history of the having events. In technical analysis, patterns repeat themselves more often than not. It is important to differentiate between technical patterns and fundamental events. The having event falls into the fundamental category, and has nothing to do with technical analysis.
One of the most overlooked aspects of trading any asset is volume. This is evident in the Bitcoin rally as well as the equity market rally. Low volume advances, and corrections, lack validity. They are also extremely vulnerable to reversals, especially once volatility spikes. Comparing the social media hype with the lack of volume suggests that smart money is not buying, leaving retail traders to get sucked into a vortex before the bull trap snaps. Knowing the impact of psychology in trading, the $10K level is perfect for another massive sell-off to follow.
Over the next few weeks and months leading to the Bitcoin having, I will monitor price action in Bitcoin for one important development. While I believe that we will see an increase in volatility, I will look for higher highs and higher lows. The most important level I will monitor is around $6.4K. Price action formed a solid bottom there, and this is roughly where the break-even price for mining is predicted to be. A breakdown below is forcing smaller mining operations to idle their hardware.
My cryptocurrency portfolio remains unchanged from last week. I currently hodl 1,000 Bitcoins, at an average entry price of $7,950, 60,000,000 Ripples, which carry an average entry price of $0.3015, and 100,000 Litecoins with an average entry price of $52.80. I also maintain my 20,000 Ether short-position, which I took at $135.00. The four charts below show my Bitcoin, Ripple, Litecoin, and Ethereum holdings.
I continue to hold my 250 lots long Gold position, that I took on October 18th 2019 at $1,485.00 for a margin requirement of $372,798, with a pip value of $250.I think we will retake the $1,600 level and march higher as the year progresses. The chart below shows my open Gold trade.
Here is the summary of my Bitcoin - Forex Combo portfolio: I hodl 1,000 Bitcoins worth $8,847,830, 60,000,000 Ripple worth $13,692,000 and 100,000 Litecoin worth $6,073,000. I also have a 20,000 Ethereum short position worth $1,882,400 plus a total cash portfolio worth $2,823,503. I have the following positions in my forex portfolio: a 250 lots Gold long position worth $2,163,048. My total Bitcoin - Forex Combo portfolio is worth $35,481,781, up $3,225,280 from last week’s value of $32,256,501 and at a new all-time high. Are you ready to grow your account? Take your first step now, open your own PaxForex Trading Account today, and follow my Bitcoin - Forex Combo Strategy! Comment below with any questions you may have, and I will be happy to help you get started!
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